1/
Eurodollar University vs Dollar Milkshake Theory, a thread.
I thought about this a lot. There was actually an interview with Jeff Snider and Brent Johnson around 18 months ago which helps a bit.
Eurodollar University vs Dollar Milkshake Theory, a thread.
I thought about this a lot. There was actually an interview with Jeff Snider and Brent Johnson around 18 months ago which helps a bit.
2/
Dollar Milkshake is the “cleanest dirty shirt” argument that all central banks are easing with QE but the fed was easing less and with higher rates which was sucking all investment into dollar assets.
Dollar Milkshake is the “cleanest dirty shirt” argument that all central banks are easing with QE but the fed was easing less and with higher rates which was sucking all investment into dollar assets.
3/
Jeff Snider says that QE/QT doesn’t do much & interest rate differentials don’t explain things either. There is something fundamentally different about the US dollar because every country lends and borrows in it and trades with it, making it a truly global currency.
Jeff Snider says that QE/QT doesn’t do much & interest rate differentials don’t explain things either. There is something fundamentally different about the US dollar because every country lends and borrows in it and trades with it, making it a truly global currency.
4/
The dollar is strengthening because something fundamentally broke in the Eurodollar system back in 2008 so that banks just didn’t keep lending like they did before. Dollars are created thru bank lending, which was increasing parabolically before then
The dollar is strengthening because something fundamentally broke in the Eurodollar system back in 2008 so that banks just didn’t keep lending like they did before. Dollars are created thru bank lending, which was increasing parabolically before then
5/
with all sorts of new financial instruments like CDO’s as prime collateral. After this came to an abrupt halt, we’ve been cycling through Eurodollar crises caused by dollar shortages which low fed rates and QE don’t address, and which still confuse mainstream economists.
with all sorts of new financial instruments like CDO’s as prime collateral. After this came to an abrupt halt, we’ve been cycling through Eurodollar crises caused by dollar shortages which low fed rates and QE don’t address, and which still confuse mainstream economists.
6/
To me, Snider’s view is the only one that seems to explain everything.
Why was the job market so different after 2008? Why did the 25-54 labor force keep shrinking? Why didnt gold & silver keep rising w/ all CB’s easing? Why was the Yen strong while yields fell as BOJ did QE?
To me, Snider’s view is the only one that seems to explain everything.
Why was the job market so different after 2008? Why did the 25-54 labor force keep shrinking? Why didnt gold & silver keep rising w/ all CB’s easing? Why was the Yen strong while yields fell as BOJ did QE?
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